The cannabis industry is estimated to grow to $30 billion in sales by 2025. Accompanying that estimate is the expectation of a significant expansion in labor force across all states that have legalized medical and recreational marijuana use. But in a controversial move, some unions are asking states to mandate that pot companies sign peace agreements if they want to obtain a cannabis license.

In the article, Matt reminded businesses to weigh the benefits of labor peace agreements, and possibly a unionized workforce, when contemplating whether to enter into the agreements. Adding that the agreements and subsequent union recognition could lead to better employee recruiting and retention, but also include higher labor costs.

“At the end of the day,” Luzadder said, “I think it’s a balancing act,” and that “for many companies it may tilt toward being union friendly.”

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Kelley Drye has extensive experience navigating the rapidly-changing cannabis industry. We represent a multitude of stakeholders in the cannabis ecosystem, from growers and processors, manufacturers and retailers, to investors and financial organizations.